2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,

Turban, Aronson, and Liang

9-1
Chapter 9
Knowledge Management
Turban, Aronson, and Liang
Decision Support Systems and Intelligent Systems,
Seventh Edition

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-2
Learning Objectives
Define knowledge.
Learn the characteristics of knowledge management.
Describe organizational learning.
Understand the knowledge management cycle.
Understand knowledge management system technology and how it
is implemented.
Learn knowledge management approaches.
Understand the activities of the CKO and knowledge workers.
Describe the role of knowledge management in the organization.
Be able to evaluate intellectual capital.
Understand knowledge management systems implementation.
Illustrate the role of technology, people, and management with
regards to knowledge management.
Understand the benefits and problems of knowledge management
initiatives.
Learn how knowledge management can change organizations.
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-3
Siemens Knows What It Knows Through
Knowledge Management Vignette
Knowledge management
Community of interest
Repositories
Communities of practice
Informal knowledge-sharing techniques
Employee initiated
Created ShareNet
Easy to share knowledge
Incentives for posting
Internal evangelists responsible for training,
monitoring, and assisting users
Top management support
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management
Process to help organization identify,
select, organize, disseminate, transfer
information
Structuring enables problem-solving,
dynamic learning, strategic planning,
decision-making
Leverage value of intellectual capital
through reuse

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge
Data = collection of facts, measurements,
statistics
Information = organized data
Knowledge = contextual, relevant,
actionable information
Strong experiential and reflective elements
Good leverage and increasing returns
Dynamic
Branches and fragments with growth
Difficult to estimate impact of investment
Uncertain value in sharing
Evolves over time with experience
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge
Explicit knowledge
Objective, rational, technical
Policies, goals, strategies, papers, reports
Codified
Leaky knowledge
Tacit knowledge
Subjective, cognitive, experiential learning
Highly personalized
Difficult to formalize
Sticky knowledge
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management
Systematic and active management
of ideas, information, and knowledge
residing within organizations
employees
Knowledge management systems
Use of technologies to manage
knowledge
Used with turnover, change, downsizing
Provide consistent levels of service
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-8
Organizational Learning
Learning organization
Ability to learn from past
To improve, organization must learn
Issues
Meaning, management, measurement
Activities
Problem-solving, experimentation, learning from past, learning from
acknowledged best practices, transfer of knowledge within
organization
Must have organizational memory, way to save and share it
Organizational learning
Develop new knowledge
Corporate memory critical
Organizational culture
Pattern of shared basic assumptions
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-9
Knowledge Management
Initiatives
Aims
Make knowledge visible
Develop knowledge intensive culture
Build knowledge infrastructure
Surrounding processes
Creation of knowledge
Sharing of knowledge
Seeking out knowledge
Using knowledge
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management
Initiatives
Knowledge creation
Generating new ideas, routines, insights
Modes
Socialization, externalization, internalization,
combination
Knowledge sharing
Willing explanation to another directly or
through an intermediary
Knowledge seeking
Knowledge sourcing
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-11
Approaches to Knowledge
Management
Process Approach
Codifies knowledge
Formalized controls, approaches, technologies
Fails to capture most tacit knowledge
Practice Approach
Assumes that most knowledge is tacit
Informal systems
Social events, communities of practice, person-to-
person contacts
Challenge to make tacit knowledge explicit, capture it,
add to it, transfer it
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Approaches to Knowledge
Management
Hybrid Approach
Practice approach initially used to store explicit
knowledge
Tacit knowledge primarily stored as contact information
Best practices captured and managed
Best practices
Methods that effective organizations use to operate and
manage functions
Knowledge repository
Place for capture and storage of knowledge
Different storage mechanisms depending upon data
captured

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-13
Knowledge Management System
Cycle
Creates knowledge
through new ways of doing
things
Identifies and captures new
knowledge
Places knowledge into
context so it is usable
Stores knowledge in
repository
Reviews for accuracy and
relevance
Makes knowledge
available at all times to
anyone
Disseminate
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Components of Knowledge
Management Systems
Technologies
Communication
Access knowledge
Communicates with others
Collaboration
Perform groupwork
Synchronous or asynchronous
Same place/different place
Storage and retrieval
Capture, storing, retrieval, and management of both
explicit and tacit knowledge through collaborative
systems
2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Components of Knowledge
Management Systems
Supporting technologies
Artificial intelligence
Expert systems, neural networks, fuzzy logic, intelligent
agents
Intelligent agents
Systems that learn how users work and provide assistance
Knowledge discovery in databases
Process used to search for and extract information
Internal = data and document mining
External = model marts and model warehouses
XML
Extensible Markup Language
Enables standardized representations of data
Better collaboration and communication through portals

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management
System Implementation
Challenge to identify and integrate components
Early systems developed with networks, groupware,
databases
Knowware
Technology tools that support knowledge management
Collaborative computing tools
Groupware
Knowledge servers
Enterprise knowledge portals
Document management systems
Content management systems
Knowledge harvesting tools
Search engines
Knowledge management suites
Complete out-of-the-box solutions

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management
System Implementation
Implementation
Software packages available
Include one or more tools
Consulting firms
Outsourcing
Application Service Providers

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management System
Integration
Integration with enterprise and
information systems
DSS/BI
Integrates models and activates them for specific
problem
Artificial Intelligence
Expert system = if-then-else rules
Natural language processing = understanding
searches
Artificial neural networks = understanding text
Artificial intelligence based tools = identify and
classify expertise



2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Knowledge Management System
Integration
Database
Knowledge discovery in databases
CRM
Provide tacit knowledge to users
Supply chain management systems
Can access combined tacit and explicit knowledge
Corporate intranets and extranets
Knowledge flows more freely in both directions
Capture knowledge directly with little user involvement
Deliver knowledge when system thinks it is needed

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
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Human Resources
Chief knowledge officer
Senior level
Sets strategic priorities
Defines area of knowledge based on organization mission and goals
Creates infrastructure
Identifies knowledge champions
Manages content produced by groups
Adds to knowledge base
CEO
Champion knowledge management
Upper management
Ensures availability of resources to CKO
Communities of practice
Knowledge management system developers
Team members that develop system
Knowledge management system staff
Catalog and manage knowledge


2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-21
Knowledge Management
Valuation
Asset-based approaches
Identifies intellectual assets
Focuses on increasing value
Knowledge linked to applications and
business benefits approaches
Balanced scorecard
Economic value added
Inclusive valuation methodology
Return on management ratio
Knowledge capital measure
Estimated sale price approach

2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-22
Metrics
Financial
ROI
Perceptual, rather than absolute
Intellectual capital not considered an asset
Non-financial
Value of intangibles
External relationship linkages capital
Structural capital
Human capital
Social capital
Environmental capital


2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition,
Turban, Aronson, and Liang
9-23
Factors Leading to Success and
Failure of Systems
Success
Companies must assess need
System needs technical and organizational infrastructure
to build on
System must have economic value to organization
Senior management support
Organization needs multiple channels for knowledge
transfer
Appropriate organizational culture
Failure
System does not meet organizations needs
Lack of commitment
No incentive to use system
Lack of integration